Stock market today: Dow Jones, S&P 500 wavers; Walgreens shares slide despite strong quarter | New
Stock Market Today Mid-Morning Updates
Thursday, the Dow Jones Industrial Average is down more than 530 points as investors continue to weigh Fed rate hikes and the aftermath of rising inflation. Additionally, investors are also eagerly awaiting a barrage of second-quarter earnings starting next week to get a glimpse of the state of the economy. CEO of Wells Fargo (NYSE: WFC), Charles Scharf says the economy is unprepared for the upcoming rate hikes the Fed has been hinting at. He also cites that if consumers and businesses continue to remain strong today, they could see deterioration if the Fed continues to raise rates.
Shares of Sharpness marks (NYSE: AYI) are in the center of attention today after beating estimates for the highest and lowest numbers for its latest quarter. Constellation Brands (NYSE: STZ) beat earnings and revenue today. It posted earnings per share of $2.66, $0.14 above estimates. Photocopy (NASDAQ: XRX) is down 2.92% today after its CEO, John Visentin, died aged 59 following an illness. COO and President Steve Bandroczak is now interim CEO.
Among the Dow Jones leaders, stocks of Apple (NASDAQ: AAPL) are down 3.73% today while Microsoft (NASDAQ: MSFT) is also down 2.63%. Meanwhile, disney (NYSE: DIS) and Nike (NYSE: NKE) are trading lower on Thursday. Among the financial leaders of the Dow, Visa (NYSE:V) is down 2.96% while JPMorgan Chase (New York Stock Exchange: JPM) is down 3.31%
EV Leader Shares You’re here (NASDAQ: TSLA) are down 3.11% on Thursday. Rival electric vehicle companies like Rivian (NASDAQ: RIVN) are also down 5.48%. Lucid Group (NASDAQ: LCID) is down 3.84% today. However, Chinese electric vehicle leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) are also trading lower today.
Dow Jones Today: US Treasury Yields Drop to 3.03% After Personal Consumer Staples Reading Released; Bitcoin Slips Below $20,000
Following the stock Exchange at Thursday’s open, the S&P 500, Dow and Nasdaq are trading lower at 2.02%, 1.76% and 2.87% respectively. Among listed index funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is down 2.76% while SPDR S&P 500 ETF (NYSEARC: SPY) is also down0 by 1.93%.
The benchmark 10-year US Treasury yield fell slightly to the 3% mark today as the Fed’s preferred gauge was released today. In diving, prices for basic personal consumption expenditure rose 4.7% year-over-year. That’s 0.2 percentage points lower than the previous month, but still at multi-decade highs. Bitcoin price continued its slide today, briefly dropping below $19,000 before rebounding slightly. The cryptocurrency is down more than 50% this year and around 70% from its all-time high in November. Often seen as a hedge against inflation, the cryptocurrency market has been under pressure in recent months, like other assets.
[Read More] Top Stock Market News For Today June 30, 2022
Walgreens Boots Alliance Reports Strong Quarter and Reaffirms Guidance
Also in the stock market today, we have Walgreens Boot Alliance (NASDAQ: WBA) which has just released its third quarter financial statements for fiscal year 2022. The company says it has strong execution across all of its segments, with results broadly in line with expectations. Diving, it posted adjusted earnings per share of $0.96 for the quarter. For reference, that would be against the consensus figure of $0.92. Total sales for the quarter were $32.59 billion for the quarter.
Notably, its US segment contributed a huge chunk of total sales this quarter, at $26.7 billion. However, total U.S. sales were down 7.1% year-over-year, due to lower AllianceRx Walgreens business. Comparable sales increased 1.8% year over year. Throughout the quarter, Walgreens reports that its sites administered 4.7 million vaccines. This would represent a notable decrease from the 11.8 million doses of vaccine administered in the previous quarter. Despite this pandemic-related sales deceleration, Walgreens continues to find ways to adapt to the current operating environment.
Clearly, the company’s expansion of its online services during the quarter would be commendable. This is mainly thanks to its efforts to offer curbside pickup and delivery. This would allow Walgreens customers to get their basic necessities through the pharmacy chain. Overall, Walgreens notes that its U.S. digital sales grew 25% year-over-year. As the company aims to navigate the changing consumer healthcare market, WBA stock could be worth watching.
Home furnishings retailer RH slips on lowered guidance for fiscal 2022 outlook
Shares of HR (NYSE: HR) are down more than 12% from today’s opening bell. This comes after management announced revisions to its outlook for its 2022 fiscal year. According to RH, one of the main reasons for this is the slowdown in consumer demand for the second half of the year. He says that given macro conditions and the current trend in his business, he assumes demand will continue to slow for the remainder of his fiscal year. In its press release, RH forecasts annual revenue to be 2% to 5% lower year-over-year. The adjusted operating margin will be between 21% and 22%.
HR CEO Gary Friedman provides additional context to all of this. He explains, “With mortgage rates doubling from last year’s levels, luxury home sales down 18% in the first quarter, and the Federal Reserve’s forecast for another 175 basis point increase in mortgage rates. federal funds by the end of the year, we expect demand to continue to slow throughout the year. year.”
Mr. Friedman concluded, “While we expect the next few quarters to be challenging in the near term as we cycle the extraordinary growth of the COVID-related spending shift, lose less valuable market share as we continue to improve our quality and choose not to promote our business as we navigate through multiple macroeconomic headwinds, we continue to believe that our long-term investments will allow us to generate peak performance over a longer-term horizon. The company also indicates that it has not repurchased any shares since announcing the extension of its authorization to repurchase common shares on June 2, 2022. Given all this, should you pay attention to the action HR given its current situation?